South Korea E-Liquid Imports Surge Amid Synthetic Nicotine Loophole

South Korea vape import synthetic nicotine regulation loophole

South Korea witnessed a dramatic rise in e-liquid imports last year, reaching $85.64 million – a 39.5% increase from 2023, according to customs data. This upward trend continues, with first-quarter 2025 imports already up 8.5% year-over-year. Critics argue this surge highlights a significant “regulatory blind spot” concerning synthetic nicotine.

The core issue lies in South Korea’s Tobacco Business Act, which defines tobacco based on products using tobacco leaf as a raw material. This definition currently excludes synthetic nicotine, meaning vaping products using it are not legally classified as tobacco. Consequently, these popular pod-based systems avoid hefty tobacco-related taxes and bypass restrictions like the ban on online sales applicable to traditional nicotine products. This lower cost and easier accessibility, including via vending machines, has reportedly fueled demand, particularly among younger demographics.

While overall traditional cigarette sales decline in South Korea, the electronic segment grows, driven partly by these untaxed synthetic options. Legislation to amend the Tobacco Business Act and classify synthetic nicotine as tobacco – thereby subjecting it to the same taxes and sales regulations – has been discussed in the National Assembly but is still pending enactment.

Industry observers and regulators stress the urgency of closing this loophole, pointing out it not only facilitates youth access but also enables tax evasion. Customs detected 110 cases of tobacco-derived nicotine being falsely declared as synthetic between late 2022 and mid-2023, representing a significant volume. Calls persist for swift legislative action to ensure consistent regulation and taxation across all nicotine vaping products.

Matthew Ma
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